Ways to finance water efficiencies
Tax-exempt municipal bonds — Debt securities issued by a state, municipality or county to finance its capital expenditures. Municipal bonds are exempt from federal taxes and from most state and local taxes, especially if you live in the state in which the bond is issued. State and federal revolving loan funds — A fund administered by a state to provide low-interest loans for investments in water and sanitation infrastructure. Such a fund receives its initial capital from federal grants and state contributions, and then issues bonds that are guaranteed by that capital. It then “revolves” through the repayment of principal and the payment of interest on outstanding loans.
Property assessed clean energy (PACE) — A means to finance water and energy efficiency and renewable energy improvements on private property. Pace programs allow local governments, state governments or other authorities to fund the up-front cost of improvements on commercial and residential properties, which are paid back usually on owners’ property tax bills. To learn more, go to http://energy.gov
Pay-as-you-save (PAYS) programs — Enable building owners or tenants to purchase and install money-saving resource-efficient measures with no up-front payment and no debt obligation. Those who benefit from the water, energy and money savings pay for these measures through a charge on their utility bill, but only for as long as they occupy the location where the measures are installed.
Investment tax credit — There is a 30 percent federal tax credit for solar systems on residential and commercial properties that expires at the end of 2016. The company that installs, develops or finances the project uses the credit. If the homeowner purchases the solar system outright, the residential investment tax credit goes to the homeowner. To learn more, go to www.seia.org.